Metrics to show what works and what deserves to be grown
There are many metrics for judging whether innovations are working – at various stages of development. Metrics can play a decisive role in determining whether innovations are scaled up, or deserve to be. Over several decades a great deal of work has gone into the design of measures of social value. A recent survey found 150 different metrics in use in the non-profit sector. However, relatively few of these are actually used to make decisions.
One reason why this field has failed to make progress is that there is often confusion between three different tasks for metrics: to provide funders or investors with data on impact; to provide a tool for organisations to manage their own choices internally; to better understand long-term processes of social change and impact. Although these purposes overlap, any one metric cannot do all three of these tasks simultaneously, and there are direct conflicts of interest between the players involved in each of these. Here we list a few of the methods currently in use, most of which fall into the first category, or providing a means for providers of money to judge between alternatives.
Standard investment appraisal methods
There are a wide range of tools in use in banking, venture capital and other fields of investment which assess current and future cash flows, asset...
Read moreCost-benefit analysis (and its variant cost-effectiveness analysis)
Cost-benefit analysis (and its variant cost-effectiveness analysis) has been the most widely used method, primarily by public authorities and agencies to assess a particular proposal or...
Read moreStated preference methods
Stated preference methods monetise social value by drawing on what people say they would pay for a service or outcome. These also try to estimate what...
Read moreRevealed preference methods
Revealed preference methods, which also come from the field of economics, focus on the choices people have made in related fields in order to estimate value....
Read moreSocial accounting matrices
Social accounting matrices and satellite accounts supplement GDP with additional measures of activity and value. The OECD’s Beyond GDP programme is focused on taking these forward,...
Read moreMeasurements of QALYS and DALYs
Measurements of QALYS and DALYs (quality and disability adjusted life years) have become a common measure for judging the cost-effectiveness of health policies and clinical interventions....
Read morePatient Reported Outcome Measurements
Patient Reported Outcome Measurements and EQ-5D are other measures of valuing health status and patient experience. EQ-5D is a self-rating tool for patients to assess their...
Read moreValue added measures
Value added measures in education assess how much individual schools ‘add’ to the quality of pupils they take in - some schools might achieve very good...
Read moreSocial impact assessment
Social impact assessment methods have been in use since the 1960s, trying to capture all the dimensions of value that are produced by a new policy...
Read moreSocial Return on Investment
Social Return on Investment (first developed by REDF), has become increasingly popular within the non-profit world. This approach applies methods from the social impact tradition but...
Read moreSocial accounting methods
Social accounting methods have been used by many countries. France’s bilan sociétal is a set of 100 indicators (ranging up to 400) showing how enterprises affect society....
Read moreBlended value methods
Blended value methods (associated with Jed Emerson) try to combine social and economic returns in ways that make sense to prospective investors and philanthropists....
Read moreMeasuring public value
Measuring public value (particularly associated with Mark Moore), explores the value associated with public policy. Some of these tie value to notions of opportunity cost (that...
Read moreLife satisfaction measures
Life satisfaction measures are a particularly interesting new set of approaches (led by Professor Paul Dolan) which compare public policy and social actions by estimating the...
Read moreMethods within the built environment
A Young Foundation study identified nearly 30 methods in use, some designed to guide investors, including income capitalization methods as well as methods focused on profits,...
Read moreOperational metrics
Operational metrics, such as those for statistical production control to spot emergent problems as prompts for innovation (see method 18). For example, a study of the...
Read moreComparative metrics
Comparative metrics, including cost and performance metrics/benchmarking for operations and self-monitoring (such as those used in the New York Police Department), as well as qualitative means...
Read moreBalanced Scorecards
Balanced Scorecards are a performance measurement tool for assessing whether operational activities are aligned with broader strategic objectives....
Read moreUser oriented and generated metrics
User oriented and generated metrics such as the sousveys – surveys undertaken by citizens on services provided by the state - used to gather chronic disease...
Read moreUser Experience Surveys
User Experience Surveys such as those now being introduced in the National Health Service which explore users experience and emotions in relations to the service as...
Read moreOutcome benchmarks
Outcome benchmarks, such as the local surveys now undertaken to measure answers to questions such as how well people get on with each other in a...
Read moreAssessment as learning
Assessment as learning, including peer reviews and real time evaluation methods to promote cross-pollination such as NESTA’s evaluation of Health Launchpad....
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